Taxation Ruling

IT 2235A - Addendum

Income tax : "Curran" type tax avoidance scheme - application of section 6BA

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TAXATION RULING IT 2235

ADDENDUM

Taxation Ruling IT 2235 deals with the decision of the Federal Court of Australia in Grant v FC of T 86 ATC 4413; 17 ATR 724.

The Federal Court dismissed the taxpayer's appeal in a unanimous decision, thereby confirming that section 6BA of the Income Tax Assessment Act 1936 (the Act), with effect from 16 August 1977, applies to a 'Curran' type tax avoidance scheme so as to deny any deduction otherwise allowable under subsection 51(1) of the Act.

The High Court in John v FCT 89 ATC 4101; (1989) 20 ATR 1, has since overruled the earlier decision of that Court in Curran v FC of T 74 ATC 4296; (1974) 5 ATR 61, on the basis that the earlier decision was erroneous.

Commissioner of Taxation
15 December 1994

References

BO CNN J36/354/1

Related Rulings/Determinations:

IT 2235

Case References:
Grant v FC of T
86 ATC 4413
17 ATR 724

John v FCT
89 ATC 4101
(1989) 20 ATR 1
Curran v FC of T
74 ATC 4296
(1974) 5 ATR 61